China offered to bail out 1MDB for deals

Former Malaysian Prime Minister Najib Razak and Chinese official Xiao Yaqing

Former Malaysian Prime Minister Najib Razak and Chinese official Xiao Yaqing

Senior Chinese leaders offered in 2016 to help bail out the 1Malaysia Development Bhd (1MDB) fund at the center of a swelling, multibillion-dollar graft scandal, said The Wall Street Journal (WSJ).

Citing current and former Malaysian officials, the report stated that Najib turned to Low "to negotiate with China to resolve the crisis", after which Low drew up plans for Malaysian meetings with Chinese officials and even attended some of the meetings. Despite the reported Chinese offer, the investigations continued. It further offered to bug the offices and homes of Journal reporters reporting on the fund and leak information, according to the newspaper.

The Malaysian government will scrutinise bilateral deals made with China under the previous government, finance minister Lim Guan Eng said on Tuesday (Jan 8).

It added that within months, Najib signed US$34 billion of rail, pipeline and other deals with Chinese state companies, to be funded by Chinese banks and built by Chinese workers.

In the WSJ report, it was alleged that former prime minister Datuk Seri Najib Razak's administration had colluded with China on such projects to inflate their values in order to divert some of the funds towards 1MDB that was struggling to pay its debt at the time. "If it was said in black and white, then it is something we will pursue", Lim told a press conference at the Finance Ministry here, today.

Families furious after woman in vegetative state gives birth at nursing facility
The outlet also reported that the patient has been in a vegetative state for at least a decade after almost drowning. No one knew she was pregnant and healthcare staff were initially unsure why she was moaning, the reports said.

According to WSJ, China's Foreign Ministry said that nations would not welcome the program as they have if it carried the financial and geopolitical risks asserted by critics.

Since the defeat of Najib's government to a reformist alliance in May - the first change of government since Malaysia became an independent country - ties have cooled markedly between Beijing and Kuala Lumpur.

It said minutes of the Chinese-Malaysian meetings say that although the projects' purposes were "political in nature", it was imperative the public see them as market-driven.

The US State Department alleges that $4.5 billion was looted from the fund by Najib and his cronies, and spent on everything from artwork to high-end real estate. He denies any wrongdoing.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.